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SOU's budget avoids program cuts By TONY BOOM ASHLAND - Southern Oregon University will start its school year Sept. 24 on a tight budget that leaves little "wiggle room" but avoids cuts in programs for at least a year. The institution will dip into its reserves the first year of its biennial budget period to maintain programs while officials consider cuts that might be required to balance the budget for the second year. The university had reserves of $2.5 million in June. "It's going to be a tight biennium for us," said Ron Bolstad, vice president for administration and finance. "There's not much wiggle room in this budget." Rising health care costs for employees and increasing energy expenses will also put pressure on university finances, Bolstad said. The Legislature provided the Oregon University System with $812 million in state general support for the new biennium, an increase over the $754 million for 1999-2001. The amount is less that needed to maintain service levels, OUS officials say. Some of the money is designated for specific purposes, including engineering education, $20 million; the new Cascades Campus in Bend, $7.2 million; and enrollment growth, $8.5 million. SOU will receive $500,000 of the engineering money for its computer science program. The university has been told to plan on $39.9 million from the state for the two-year period. The rest of its general fund budget is made up of student tuition. Last year that was about $16 million. SOU gave back to the state $800,000 last year when enrollment failed to meet projections. In addition to losing part of the state's enrollment-based funding, lower enrollment also meant SOU took in $700,000 less than it expected in tuition paid by students. SOU's final budget figure for 2000-2001 was $36 million, including state support and tuition. Enrollment fell from fall quarter 1999's 5,751 students to 5,502 in the fall. Enrollment for winter term, however, showed an increase over the previous year. Average enrollment figures for all three terms sparked the budget reduction. Since 1999, SOU and other OUS campuses have kept all tuition money instead of pooling it for later redistribution. Under the previous financing arrangement, pooled money would be used to assist schools that had enrollment drops. Now the universities must adjust if there is a decrease in student numbers. University officials are "guardedly optimistic" that enrollment will increase this year based on an increase of admitted students, greater residence hall registration and other indicators, said Katy Bazylewicz, SOU's marketing and public relations director. Tentative budget estimates incorporate a 2 percent increase in enrollment. Coupled with the 4 percent tuition increase SOU should have additional tuition money. The tuition increase is the first for SOU since 1995. Undergraduates will pay a yearly total of $3,555 in tuition and fees, up from $3,369 last year. Non-resident undergraduate students will pay $10,971 compared to $10,513 last year. A 3 percent tuition increase is projected for next year. Service organizations at the university, including Jefferson Public Radio, Southern Oregon Regional Services Institute, and the Small Business Development Center had faced funding reductions in a budget proposed by Gov. John Kitzhaber. Those cuts, which totaled about $340,000, were restored in the final budget passed by the Legislature and signed by Kitzhaber. The university will continue to receive funds for support services it provides to the Oregon Health Sciences University School of Nursing program on the Ashland campus. Those funds will total $46,000 in this year's budget. Reach Ashland bureau reporter Tony Boom at 482-4651, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.